"Economic Policy Review" Bulletin ISSN 1313 - 0544

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...now there is another issue on the agenda – does Bulgaria want to be in the eurozone? Just as the eurozone can prolong our accession indefinitely, so can we do it on our side. In fact, this shall not be done furtively – we can establish our own criteria that the eurozone has to cover, in order for us to join it. Using the Maastricht example, these criteria can be called the “Sofia” criteria....

What’s more interesting is how the “new realities” in the balance of payment affected the other elements of the external balance – the currency reserves and the external debt. Contrary to the expectations, the disappearance of the current account deficit did not lead to a sharp increase in the currency reserves, but quite the opposite. The reason was that the current account deficit was caused in the first place by the inflow of foreign capital, which supported the currency reserves.

On July 3, the Institute for Мarket Еconomics (IME) presented its analysis on the condition of “Bulgarian Posts” in the context of liberalization of postal services in the EU and Bulgaria. The round table took place at the “Sofia” hall of Grand Hotel “Sofia”.

Just recently the Ministry of Finance issued 5-year external debt in euro, with annual coupon of 4,25% and annual yield of 4,436%. The total value of the issue was EUR 950 million, while the submitted bids stood at over EUR 6 billion. The issue was oversubscribed in just 30 minutes from hitting the screens and the investors’ interest was sizable.

The Ministry of Economy finally published the eagerly-awaited plan for amendments to the Law on Protection of Competition (LPC). The newly proposed texts in the LPC are, for all points and purposes, a reaction to the ‘drama’ between the suppliers and the supermarket chains. It is no secret to anyone that the government feels compelled to solve this “problem” and legislation on competition is the shortest way for government (political) intervention into these relationships.

The five partners working on the GIFTED Project met for a two-day-meeting in Brussels for the concluding part of the research activities of the project and to discuss future activities. The project aims at analyzing the current financing frameworks for adult learning and is set to develop an innovative financial tool, which can help increase the flexibility and efficiency of the system.

Video article

Milton Friedman - The Free Lunch Myth

Quote of the week

"Underlying most arguments against the free market is a lack of belief in freedom itself."